Wood composite and furniture industry: natural resources as a risk
The demand for products from the wood composite and furniture industry has remained stable for years. The actual risks to the industry are the different cost factors for effective wood processing and material production.
On the one hand, prices for wood as a raw material are increasing, also due to the high demand for wood as a source of energy in biomass plants. On the other hand, rising energy costs also mean higher costs of production. A third risk factor is the increasing concentration on just a few suppliers amongst the manufacturers of chemical raw materials for wood composite production. This dependency on the supplier relations results in significantly higher business interruption losses in the event that a supplier cannot deliver.
The processing of wood into wood composites and furniture also leads to a high risk of fire, for example from the breaking down of wood into chips and fibres or the pressing and drying of composite materials. Due to the high fire load, even small sources of ignition, such as sparks from production systems, hot surfaces from production equipment or technical defects, can quickly trigger a fire or even an explosion. A comprehensive fire protection strategy is therefore an essential part of risk management for the wood processing industry. Funk offers targeted risk assessment in terms of fire hazards and all other wood-specific risks.
Assessing and covering risks in the wood composite industry
- Property damage insurance against fire/explosion and machinery breakdown (technical and organisational fire protection)
- Business interruption due to property damage, technical damage or supply shortages
- Liability for third party claims resulting from the production system or the products themselves (due to machinery, wood dust, lacquer and solvents)
- Professional liability insurance
- Environmental risks from processing glues and lacquers
- Forest management risks, e.g. due to forest fires, pests and the effects of climate change
- Product recall insurance
- Marine cargo insurance
- Credit insurance
- D&O insurance
- Legal protection and criminal defence insurance
- Vehicle insurance
- Employee health and benefits concepts
Insurance strategies for wood-related companies
As an experienced, independent broker for industrial insurance, Funk has supported a wide range of companies in the wood sector for many years, from sawmills and wood composite producers to furniture manufacturers. Each of our clients benefits from our industry knowledge, our trained eye on individual company risks and our cross-discipline knowledge of the global insurance market.